Background:
The Kingdom of the Netherlands was formed in 1815. In 1830 Belgium seceded and formed a separate kingdom. The Netherlands remained neutral in World War I but suffered a brutal invasion and occupation by Germany in World War II. A modern, industrialized nation, the Netherlands is also a large exporter of agricultural products. The country was a founding member of NATO and the EC, and participated in the introduction of the euro in 1999.

Natural hazards:
the extensive system of dikes and dams protects nearly one-half of the total area from being flooded

Environment - current issues:
water pollution in the form of heavy metals, organic compounds, and nutrients such as nitrates and phosphates; air pollution from vehicles and refining activities; acid rain

Constitution:
adopted 1814; amended many times, last time 17 February 1983

Legal system:
civil law system incorporating French penal theory; constitution does not permit judicial review of acts of the States General; accepts compulsory ICJ jurisdiction, with reservations

Suffrage:
18 years of age; universal

Executive branch:chief of state:
Queen BEATRIX Wilhelmina Armgard (since 30 April 1980); Heir Apparent WILLEM-ALEXANDER (born 27 April 1967), son of the monarch
head of government:
Prime Minister Wim KOK (since 22 August 1994) and Vice Prime Ministers Annemarie JORRITSMA (since 3 August 1998) and Els BORST-EILERS (since 3 August 1998)
cabinet:
Council of Ministers appointed by the monarch
elections:
none; the monarch is hereditary; following Second Chamber elections, the leader of the majority party or leader of a majority coalition is usually appointed prime minister by the monarch; vice prime ministers appointed by the monarch
note:
government coalition - PvdA, VVD, and D'66; there is also a Council of State composed of the monarch, heir apparent, and councilors consulted by the executive on legislative and administrative policy

Legislative branch:
bicameral States General or Staten Generaal consists of the First Chamber or Eerste Kamer (75 seats; members indirectly elected by the country's 12 provincial councils for four-year terms) and the Second Chamber or Tweede Kamer (150 seats; members directly elected by popular vote to serve four-year terms)
elections:
First Chamber - last held 25 May 1999 (next to be held NA May 2003); Second Chamber - last held 6 May 1998 (next to be held May 2002)
election results:
First Chamber - percent of vote by party - NA; seats by party - CDA 20, VVD 19, PvdA 15, D'66 4, other 17; Second Chamber - percent of vote by party - PvdA 30.0%, VVD 25.3%, CDA 19.3%, D'66 9.3%, other 16.1%; seats by party - PvdA 45, VVD 38, CDA 29, D'66 14, other 24

Judicial branch:
Supreme Court or Hoge Raad, justices are nominated for life by the monarch

Political parties and leaders:
Christian Democratic Appeal or CDA [Jaap de Hoop SCHEFFER]; Democrats '66 or D'66 [Tom KOK]; Labor Party or PvdA [Wim KOK]; People's Party for Freedom and Democracy (Liberal) or VVD [Hans F. DIJKSTAL]; a host of minor parties

Political pressure groups and leaders:
Federation of Netherlands Trade Union Movement (comprising Socialist and Catholic trade unions) and a Protestant trade union; Federation of Catholic and Protestant Employers Associations; Interchurch Peace Council or IKV; large multinational firms; the nondenominational Federation of Netherlands Enterprises

Economy - overview:
The Netherlands is a prosperous and open economy in which the government has successfully reduced its role since the 1980s. Industrial activity is predominantly in food processing, chemicals, petroleum refining, and electrical machinery. A highly mechanized agricultural sector employs no more than 4% of the labor force but provides large surpluses for the food-processing industry and for exports. The Dutch rank third worldwide in value of agricultural exports, behind the US and France. The Netherlands successfully addressed the issue of public finances and stagnating job growth long before its European partners. This has helped cushion the economy from a slowdown in the euro area. Strong 3.8% GDP growth in 1998 was followed by an only slightly lower 3.4% expansion in 1999. The outlook remains favorable, with real GDP growth in 2000 projected at 3.25%, along with a small budget surplus. The Dutch were among the first 11 EU countries establishing the euro currency zone on 1 January 1999.

Currency:
1 Netherlands guilder, gulden, or florin (f.) = 100 cents; note - to be replaced by the euro on 1 January 2002

Exchange rates:
euros per US$1 - 0.9867 (January 2000), 0.9386 (1999); Netherlands guilders, gulden, or florins (f.) per US$1 - 1.8904 (January 1999), 1.9837 (1998), 1.9513 (1997), 1.6859 (1996), 1.6057 (1995)
note:
on 1 January 1999, the EU introduced a common currency that is now being used by financial institutions in some member countries at a fixed rate of 2.20371 guilders per euro; the euro will replace the local currency in consenting countries for all transactions in 2002

Telephone system:
highly developed and well maintained
domestic:
the existing system of multi-conductor cables is gradually being replaced by fiber-optic cables; the density of cellular telephone traffic is rapidly increasing and further modernization of the system is expected in the year 2001, with the introduction of the third generation of the Global System for Mobile Communications (GSM)
international:
5 submarine cables; satellite earth stations - 3 Intelsat (1 Indian Ocean and 2 Atlantic Ocean), 1 Eutelsat, and 1 Inmarsat (Atlantic and Indian Ocean regions) (1996)